Why Warner Bros. Discovery Stock Traded Lower Today

Warner Bros. Discovery Inc. (NASDAQ: WBD) shares traded lower Monday amid increased volatility after Hollywood writers accepted a tentative agreement with studios.

What Happened: The Writers Guild of America (WGA) reached a tentative agreement with entertainment companies on Monday. The highlight of the deal, among the many other provisions, was the attainment of a considerable increase in compensation for streaming content.

The Writers Guild’s negotiating committee touted the agreement as "exceptional, offering substantial benefits and safeguards to writers across all segments of their membership."

Why It Matters: While the strike continued for tens of thousands of actors, represented by SAG-AFTRA, the Writers Guild agreement could speed up negotiations with SAG-AFTRA.

WBD Price Action: Shares of WBD are flat in the after-hours session at the time of publication, according to Benzinga Pro.

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Photo: Mediamodifier from Pixabay